The Chennai-based computer peripherals manufacturer,
TVS Electronics, is likely select Bangalore for expanding
its operations. The growth in the personal computer
market, as well as point of sales terminals has lead
to the company contemplating expansion at a new location.
The TVS Electronics manufacturers dot matrix printers,
keyboards, uninterrupted power systems (UPS) and point
of sales terminals.
to Gopal Srinivasan, director, the low sales tax (2
per cent) in Karnataka as compared to Tamil Nadu (4
per cent) is what prompted the idea of setting up the
new assembly line in Bangalore. However, the investment
for expansion will be very marginal, he adds. According
to Srinivasan, the company is prepared for zero duty
regime for the dot matrix computer printer segment,
in which it has a 40 per cent market share.
about the company''s performance in the point of sales
terminal segment Srinivasan claims to have a significant
market share. "We have installed around 25,000
terminals which is a sizeable number. However data is
not available as to the total number of terminals sold
in the country."
the company closed it financial year ending December
31, 2003 with a turnover of Rs.261 crore and a net profit
of Rs.3.61 crore as compared to Rs.220 crore and Rs.2.18
crore registered during 2002. The total expenditure
for 2003 stood at Rs.250 crore (2002: Rs.205 crore).
increase in the after tax profit for the year 2003 is
largely due to a sharp fall in the interest outgo. Interest
cost came down by Rs.4.41 crore to Rs.5 crore.
Electronics has made major in roads into the growing
public sector -banks, insurance companies- markets.
"The Life Insurance Corporation alone has bought
18,000 printers. In addition we have Punjab National
Bank, Central Bank of India and others who are computerising
their operations in a major way," says Srinivasan.
products and solutions division contributed Rs.215 crore
towards the overall turnover while the electronic manufacturing
services business group (involved in contract manufacturing
for others) contributed the balance. The divisions contribution
would have been higher but for the uncertainty in the
set top box market. TVS Electronics had made sizeable
investment to manufacture set top boxes.
to Srinivasan, the realisations from the channel partners/distributors
have been reduced to 83 days from 90 days earlier. The
total sundry debtors for 2003 is Rs.57 crore. "We
are now distributing our products through three major
distributors. Hence we expect faster realisations,"
Electronics has bagged two sizeable contract manufacturing
orders, one from a global medical electronics company
and another from a global client for its UPS.